About Pippin Aint Easy

Like the title of this blog suggests, grabbin' pips in the Forex markets is easier said than done. This technical analysis blog will allow you to check out how I see currency price action playing out and chart patterns forming in real-time.

This is the true story of one man, picked to live in front of his computer screen and find ways to make money off the Foreign Exchange. See what happens when markets stop being polite, and start being real!

Daily Chart Art – June 20, 2012

GBP/JPY: 1-hour

First up, let’s take a look at this setup forming on GBP/JPY! At first glance, Guppy price action looks pretty choppy but a closer look will reveal that the pair is actually trading within an ascending channel. Now that price has bounced off the top of the channel and Stochastic is overbought, don’t be surprised if we see the pair fall. Just keep an eye out for the middle of the channel at around 123.50, as it’s served as solid support so far this week.

USD/CHF: 4-hour

Next up, we’ve got another channel on USD/CHF, but this time it’s of the descending kind. And just like GBP/JPY, the pair seems to be finding solid support at the middle of the channel at .9450. Considering that a hammer just formed, I wouldn’t be surprised if we see the bulls make another move to try and bust out of the channel. For now, I suggest waiting for another retest of the top of the channel before establishing a short position.

NZD/USD: Daily

Lastly, here’s a sweet Fibonacci setup on NZD/USD. After bottoming out at .7500, the pair has risen almost 500 pips and is now testing the 61.8% Fibonacci level. With this level also lining up with the psychological .8000 handle and with Stochastic deep in overbought territory, will we see the bears bust out the big guns and make another drive-by down south? I suggest taking a chill pill first and waiting for a reversal candlestick to form before putting your money on the line on this setup!

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.